Stanlow refinery owner clarifies relationship with sanctioned bank as 海角视频 Government moves to ban Russian oil

Essar Oil 海角视频 acquired the Stanlow refinery at Ellesmere Port from Shell in 2011

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Jon RobinsonNorth West Business Editor

16:16, 8 MAR 2022
Updated17:39, 8 MAR 2022

The Essar Stanlow Refinery in Ellesmere Port (Image: Essar Oil (海角视频))

The owner of one of Britain鈥檚 biggest oil refineries has clarified its relationship with a Russian lender which was sanctioned following the country's invasion of Ukraine.

Essar Oil 海角视频, which acquired the Stanlow refinery at Ellesmere Port from Shell in 2011, issued a statement ahead of the 海角视频 government confirming it will ban Russian oil by the end of 2022.

The site provides 4.4 billion litres of diesel, 3 billion litres of petrol and 2 billion litres of jet fuel a year.

When contacted by BusinessLive Essar Oil 海角视频, which is ultimately owned by Ravi and Shashi Ruia, insisted it does not have a banking or borrowing relationship with VTB or any 海角视频 entity covered by 海角视频 sanctions.

VTB was sanctioned and is set to be removed from the SWIFT global payments messaging system.

However Essar Oil 海角视频 confirmed a shareholder has "arrangements" with the bank and that it has been "provided assurances that it is taking all necessary actions to ensure full compliance with the prevailing sanctions regime impacting VTB".

In a statement, the company said: "Essar Oil 海角视频 does not have a banking or borrowing relationship with VTB or any 海角视频 entity covered by 海角视频 sanctions.

"Essar Oil 海角视频 is aware that its shareholder has arrangements with VTB.

"The shareholder has provided assurances that it is taking all necessary actions to ensure full compliance with the prevailing sanctions regime impacting VTB.

"EO海角视频鈥檚 operations are not expected to be impacted by the current announced sanctions.

"We are actively monitoring the developing body of new sanction rules as they evolve and taking appropriate advice to maintain our compliance with applicable sanctions laws."

The statement from Essar Oil 海角视频 came ahead of the 海角视频 government confirming reports that it is set to ban Russian oil by the end of 2022.

Business Secretary Kwasi Kwarteng said on Twitter: "This transition will give the market, businesses and supply chains more than enough time to replace Russian imports 鈥� which make up 8% of 海角视频 demand.

"Businesses should use this year to ensure a smooth transition so that consumers will not be affected.

"The government will also work with companies through a new taskforce on oil to support them to make use of this period in finding alternative supplies.

"The 海角视频 is a significant producer of oil and oil products, plus we hold significant reserves. Beyond Russia, the vast majority of our imports come from reliable partners such as the US, Netherlands and the Gulf. We鈥檒l work with them this year to secure further supplies.

"The market has already begun to ostracise Russian oil, with nearly 70% of it currently unable to find a buyer. Finally, while the 海角视频 is not dependent on Russian natural gas - 4% of our supply - I am exploring options to end this altogether."